The former United States presidential candidate Andrew Yang shared his opinion on the current downfall situation of the crypto sector because of the bankrupt crypto exchange FTX.
FTX was a popular crypto exchange, in terms of global crypto trade volume & highly secured crypto services. But 10 days ago, this exchange became bankrupt because of a small controversy with Binance & big panic over the FTT, a native token of the exchange, sale. The mismanagement of the user’s funds by the exchange played a very important role in pushing the FTX exchange to file bankruptcy under Chapter 11 in a US district court.
On 18 November, Andrew Yang, former United States presidential candidate, talked about the high panic situation among the crypto Investors because of the downfall of the top second-ranked crypto platform FTX.
Yang said:
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“I’ve always been in the camp that some intelligent regulation is a good thing. I think it would help the industry mature and make it more mainstream. But, unfortunately, we missed a beat — like a major beat,”
Further, he said that the downfall of FTX & its affiliated companies like Alameda Research, FTXus, etc created a situation where crypto regulatory development will go through very strict standards & may impose highly strict rules on the crypto sector.
Yang also confirmed that he is working to educate the agencies like Bipartisan Policy Center, a Washington, D.C.-based think tank so that they can understand crypto & blockchain technology more precisely.
FTX collapse & outcomes
The whole crypto sector knows very well how a small panic of the FTX customers uncovered a very big mistake of the FTX exchange and further exchange collapsed badly.
In the present time, the majority of the crypto platforms are facing an outflow of funds & users because of the panic. In response, the majority of the crypto companies are giving proof-of-reserves of their funds, which is a very good outcome for crypto investors.
Read also: Ripple seeks to get VASP regime in Ireland
FTX Bankruptcy may trigger highly strict crypto regulation, says Andrew Yang
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